If I Could Only Buy 1 Space Stock for the Next Decade, It Wouldn't Be SpaceX or Rocket Lab
This stock has a much cheaper valuation than the two large-cap space giants.
Overview
Investors in space stocks are all over Space Exploration Technologies and Rocket Lab. The problem is, these two space giants look wildly overvalued today, with price-to-sales (P/S) ratios in the stratosphere. If an investor is looking to buy these stocks for the next decade, the valuation math says they are likely to be disappointed.
But what if you want exposure to the space economy? Before taking a bet on the high-flying yet free-cash-flow-negative SpaceX and Rocket Lab, I would buy this smaller space stock instead: Planet Labs (NYSE: PL). It doesn't come without risks, but it could make a winning long-term bet for investors looking to buy the dip today. Here's why.
Details
Planet Labs was born out of the idea of monitoring the Earth from space to help improve life on Earth. It has a constellation of satellites that constantly take photos from orbit to support environmental monitoring, military and defense operations, or any use case you can imagine.
Source
Originally published at www.fool.com.